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Discussion Starter · #1 ·
A dealer is willing to sell the 4WD EX for $20,310 (thats $1000 below MSRP). I'm thinking about putting down ten thousand big ones. What should I ask for in terms of financing (APR) and or other dealer incentive goodies
 

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Whether you put down 10,000 or 500 dollars really carries no weight with dealers - they just want a deposit. It probably won't buy you much in terms of money off, free accessories, or APR, etc.

In fact it may even be detrimental to put down so much since they may expect to make money off the financing. :cry:

I'm sure they will admire your committment however and the offer they are making is very good - be wary of hidden extras however.

I personally admire yor bank roll. :D
 

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Wow, 10k down? Don't blow your money, take the payments. You never know, you may need that 10k for an emergency. But if you have an unlimited supply of money, go ahead and lay the 10k down. I bought my Element today and walked out of their paying nothing down. I have a couple of thousand in my savings account but I figured I better save that for a rainy day since I didn't have to put down a down payment.
 

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Discussion Starter · #4 ·
Won,

I've been putting away this money for three years (lots of overtime hours). This E is my gift for me for being such a good boy :lol: .

Is there a penelty if I pay the element off early?
 

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I'd suggest gettting the best possible deal through the bank on your own. Get their best rate for you and then if you want to double-down on the payments. Three years of savings can be eaten up in an instant. Get the GAP coverage from your insurance company on the purchase just in case you get broad-sided by an un-insured motorist...don't want to have a brand new paper weight hanging around. :shock:
 

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Check the fine print on your loan to make sure there is no penalty....I can't remember if it was on ELoan or Capitol One Blank Check, but one stated in the fine print that you could not just simply pay off the capitol, you would still be responsible for the entire interest ammount no matter how fast you pay off your loan.
 

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Still pay the interest? Wow I've never heard of a loan like that. That must be for really bad credit folks who are looking for an approval of any kind. I'm not surprised there is one like that, though. Yeah, definitely make sure there is no penalty for paying off your loan early.
 

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That must be for really bad credit folks who are looking for an approval of any kind.
I don't think credit rating has anything to do with the terms of the E Loan or Capitol One Loan, I believe that the only thing that your credit rating has a bearing on is your interest rate.

In all honesty I think that they have that term/condition in order for them to still generate a profit, after all they are in business to make $$$....I don't remember which one had this condition, but both loans offered us a very competitive interest rate....the one with this term was out right away, and the other one was out because the dealer wold use them, but to the dealers defense they found us a car loan 1% lower at a local bank! We were amazed! We thought we were going to end up with 4.9 on our E at the begining, what a nice surprise to get 2.9%!!!!
 

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[quote:c9be0bd16c="eMass"]Whether you put down 10,000 or 500 dollars really carries no weight with dealers - In fact it may even be detrimental to put down so much since they may expect to make money off the financing.[/quote:c9be0bd16c]

eMass is precisely right! This old-wive's tail that putting down lots of money (or even more common is the buyer who says, "Now sharpen your pencil, I'm going t pay cash!") stems from your grandparents or great-grandparents days when auto dealers were "agencies" and in some cases actually carried their own paper- the dealer personally lending you the money to purchase your new car. In that case, the prospects of a "cash buyer" were attractive to the dealer.

But in today's world (and for the past 60+ years in fact) the dealer gets paid for the car in full before the tail lights turn out of the parking lot- either by the buyer, or the lender. It's not their money that's being loaned- and as eMass said, in many cases they make a percentage or fee for placing the loan. They also have the possibility to earn additional revenue by selling you a variety of insurance products, warranties and other post-sale extras that can all be painless wrapped-up in the monthly payment.

So the bottom line: To hear that you've arranged your own financing, plan to pay cash, or plan to borrow only a little is a DIS-incentive for dealers to negotiate. They now have been put on notice that ANY PROFIT they will be making on this vehicle will ALL have to be made by sticking it to you on price. There's little or no possiblity they're going to add to their profit by selling you financing, insurance products, etc.

Hope this makes sense,

Steve
 

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Keep this in mind. Putting the equity into a vehicle is not a wise investment. Cars depreciate AND if it gets stolen or totaled in a wreck, you're even in worse shape yet. Keep the money in your pocket or put the DP down on a piece of property. I put $10K down on a car about 6 years ago (Chevy S-10 no less....... :roll: ) and when I traded it in 2 years later on Silverado :oops: :?: , it had depreciated over 50%. So did the Silverado after 2 years. No more US cars for me. They still don't have it quite right like Honda and Toyota do. I walked into the Honda dealership and walked out with my E with no money down. Took me a few times, but I finally learned.
 

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BASHEIII-

I'm with you on down payment.....we put $3000 down to get our monthly payment where we wanted to see it.....but we are buying a house next year and have our $$$ in a one year CD....nice and safe and sound! Just waiting for hubbie to finish his MBA and secure a higher paying job in his field to go house shopping! We ended up taking our house $$ out of the stock market after taking some major hits last year.
 

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I fully agree with what others have said. Pocket the 10k and put little or no money down.

If you wait a little bit, i'm sure Honda will bring back their special 2.9% on all hondas like they had over the memorial weekend.
 
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